Knowledge Sharing, Absorptive Capacity and Innovation Capabilities: An Empirical Study on Small and Medium Enterprises in North Sulawesi, Indonesia

Abstract

Abstract:The capability of a firm to instill innovation depends on its knowledge resources. This capability can be utilized by facilitating knowledge sharing and absorptive capacity in the context of small and medium enterprises. The purpose of this research is to examine how knowledge sharing can be transformed into innovation capabilities. Research suggests that knowledge sharing will first influence absorptive capacity before knowledge can be transformed to innovation capabilities. This research was conducted in North Sulawesi which has excellent economic growth by involving small and medium enterprises. The results show that knowledge donating and knowledge collecting positively influence SME's innovation capabilities if absorptive capacity is also developed. In other words, the result of the research gives us empirical evidence that new knowledge created from knowledge sharing can be transformed into innovation capabilities if it is supported by higher absorptive capacity.Abstract: Kemampuan perusahaan untuk berinovasi tergantung pada sumber-daya pengetahuan. Kemampuan ini dapat dimanfaatkan dengan memfasilitasi berbagi pengetahuan dan daya-serap dalam konteks usaha kecil dan menengah. Tujuan dari penelitian ini adalah untuk mengkaji bagaimana berbagi pengetahuan dapat diubah menjadi kemampuan inovasi. Penelitian menunjukkan bahwa berbagi pengetahuan terutama akan mempengaruhi daya-serap sebelum pengetahuan dapat diubah menjadi kemampuan inovasi. Penelitian ini dilakukan di Sulawesi Utara yang memiliki pertumbuhan ekonomi yang sangat baik dengan melibatkan usaha kecil dan menengah. Hasil menunjukkan bahwa pengetahuan dan pengetahuan menyumbangkan mengumpulkan berpengaruh positif terhadap kemampuan inovasi UKM jika kapasitas serap juga dikembangkan. Dengan kata lain, hasil penelitian memberikan bukti empiris bahwa pengetahuan baru yang dibuat dari berbagi pengetahuan dapat diubah menjadi kemampuan inovasi jika didukung oleh daya serap tinggi.

Contextual-Based Knowledge Creation for Agroindustrial Innovation

“…These cultural aspects and the dilemma of the individuals in interacting and transforming internal and external knowledge, tacit and explicit knowledge, and exploitation and exploration, shows a dynamic aspect of the knowledge creation process, as proposed by Nonaka and Toyama (2003). It also shows the capacity to absorb internal and external knowledge that are important to the organization's capability to produce innovation (Wuryaningrat 2013). …”

The Possibility of Knowledge Sharing Not Affected To Innovation Aptitude: A Study of Home Industries In North Sulawesi Province Indonesia

“…However, one of researches conducted by Wuryaningrat (2012) about SMIs/SMEs in Special Territory of Yogyakarta Province reveals the contrary. The result emerge a possibility of knowledge sharing given a negative effect if not support by adequate personal absorptive capability.…”

“…Even business paradigm nowadays has shifted from economic basis into knowledge and information basis paradigm. This paradigm shift facilitates high altitude of competitive level business based on excellent knowledge management (Wuryaningrat, 2012). Innovation is one of the options taken by companies to reinforce their competitive issue and mostly became major key point of the company business success.…”

“…The reasoning revealed by Lin (2007) is knowledge sharing possess the capability regenerating a brand new knowledge which this new knowledge hopefully can be utilized for upgrading innovation aptitude. Another study conducted by Miller et al ( , in Wuryaningrat, 2012 produce an empirical evidence of knowledge sharing between divisions in the company are truly helpful in regenerating innovation. Dyer and Nobeoko (2000) stated that Toyota became a successful business company and became role model by other company is by sharing knowledge with their suppliers.…”

“…Therefore it is important to point out the importance of replicate or readopting those other research result since it has relation with external validity of previous research. In brief way, the research of Wuryaningrat (2012) and Liao et al (2006) needed to adopt and redeveloped for generating more information about how sharing knowledge affects the company. Research being carries out in smaller scale business or so called home industry.…”